So the following process for smaller orgs may work:
Restate articles and bylaws using a model template for 501c3
organizationsComplete 1023-EZ online and pay a $400 fee
As Tom Kyte said once: “It ain’t so much the things we don’t know that get us
into trouble. It’s the things you know that just ain’t so or just ain’t so
anymore or just ain’t always so.”
(http://awads.net/wp/2006/10/26/oracle-openworld-2006-watch-tom-kyte-video/)
Iggy
P.S. For the pedantically inclined: A popular saying is “It ain’t so much the
things we don’t know that get us into trouble. It’s the things we know that
just ain’t so.” Wikiquote attributes it to a 19th century American humorist
named Artemus Ward but The Quote Verifier: Who Said What, Where, and
Whenattributes it to another 19th century humorist named Josh Billings who
actually wrote: “I honestly beleave it iz better tew know nothing than two know
that ain’t so.” Another versions attributed to Josh Billings are “It iz better
to kno less than to kno so much that ain’t so” and “You’d better not kno so
much than know so many things that ain’t so.” The misattribution to Artemus
Ward is just another example of the problem that Josh Billings was talking
about.
From: iggy_fernandez@xxxxxxxxxxx
To: alfredo.abate@xxxxxxxxx
CC: oracle-l@xxxxxxxxxxxxx
Subject: RE: OT: 501(c)3 certification for Oracle user groups
Date: Tue, 30 Jun 2015 08:26:19 -0700
This may be applicable to a lot of Oracle user groups:
As of July 1 2014, any group that pays a $400 fee and declares on a three-page
online form that it has annual income of less than $50,000, total assets of
less than $250,000 and is in compliance with the tax-code requirements of a
charity will automatically be allowed to accept donations that are
tax-deductible for the donors. Previously the groups had to fill out a detailed
26-page form, submit multiple supporting documents and provide a narrative
description of their intended activities.
The expedited application form is 1023-EZ.
Iggy
Date: Tue, 30 Jun 2015 09:38:12 -0500
Subject: Re: OT: 501(c)3 certification for Oracle user groups
From: alfredo.abate@xxxxxxxxx
To: iggy_fernandez@xxxxxxxxxxx
CC: oracle-l@xxxxxxxxxxxxx
Congratulations! I know other user groups might be interested in this option
and sharing the process is appreciated.
Alfredo
On Tue, Jun 30, 2015 at 9:06 AM, Iggy Fernandez <iggy_fernandez@xxxxxxxxxxx>
wrote:
NoCOUG applied only once and was successful on the first attempt. I believe
that the key was the restatement of our articles and bylaws (upon the advice of
the CPA who handled our case) using a model template for 501c3 organizations.
For good measure, our mission statement mentioned that we do indeed give our
members opportunities to hear viewpoints other than those handed down from 400
Oracle Parkway.
I will share our application and documents with Mark and Tim and with anybody
else who may be interested (send me an offline email).
Iggy
From: mwf@xxxxxxxx
To: tim@xxxxxxxxx; oracle-l@xxxxxxxxxxxxx
Subject: RE: OT: 501(c)3 certification for Oracle user groups
Date: Tue, 30 Jun 2015 00:44:29 -0400
Congratulations to both RMOUG and NoCOUG on achieving 501(c) 3 status.
Between 1988 (eotopica99.pdf) and an update in 1996 changes in IRS policy
changed a lot. We probably do need to update our document from “will probably
be denied” to something more hopeful and cite the experiences of both RMOUG and
NoCOUG.
In 1990 when I help found the OAUG both Bechtel’s general council and several
tax issue oriented law firms were consulted and the universal opinion at that
time was that due to the Prime computer users group and Guide users group court
rulings we had zero chance of success in gaining tax exempt status (tax exempt
as distinct from not for profit). The IOUG received similar advice, circa 1993,
if memory serves.
The rulings and advice from law firms were not myths. Three filings and a four
year perseverance required by RMOUG underscore the very real difficulties even
as late as 2003.
Tax exempt status is a desirable outcome and I know richly deserved by RMOUG,
for example, not least because of their contributions to high school education.
Once a local, regional, or sig users group achieves critical mass for the
undertaking it is well worth considering. If RMOUG and NoCOUG can share what
they regard as key positives of their applications from the IRS viewpoint, that
would be great. The prevailing attitude at the IRS has clearly evolved from
what it was in the wake of the Guide and Prime rulings.
Again, congratulations!
mwf
From: oracle-l-bounce@xxxxxxxxxxxxx [mailto:oracle-l-bounce@xxxxxxxxxxxxx] On
Behalf Of Tim Gorman
Sent: Monday, June 29, 2015 9:02 PM
To: oracle-l@xxxxxxxxxxxxx
Subject: Re: OT: 501(c)3 certification for Oracle user groups
RMOUG initiated efforts to obtain 501(c)3 status in late 2003, submitted three
times, and achieved the status in late 2007. RMOUG was also incorporated in
1996 as a 501(c)6, but I don't believe the 501(c)3 status was backdated. So in
that respect, NoCOUG is an official tax-exempt charitable non-profit since well
before RMOUG. :-)
Congratulations!
On 6/29/15 17:39, Iggy Fernandez wrote:
Following the trailblazing path set by RMOUG, NoCOUG has received 501(c)3
exemption from the IRS. The effectivity date was the date of NoCOUG
incorporation in 1996. This busts the myth that Oracle user groups are not
eligible for 501(c)3 exemption.
http://collaborate13.ioug.org/d/do/2266
The IRS’s concern is that a computer user group supporting only part of an
industry provides
some members of the industry with an advantage over others not supported by the
group. The
IRS will look at the group’s primary purposes, activities, and membership to
determine whether
the group benefits the entire industry or only a segment or a sole
brand/manufacturer. Simply by
having a nametag like “Oracle User Group” will send red flags to the IRS that
your group is
primarily supporting one brand or manufacturer (i.e. Oracle Corporation). If
your user group can
make a case that it supports the entire software industry then you may be able
to obtain tax
exemption under the 501(c) (6) rule. To obtain tax-exempt status under Section
501(c) (3), a
group must be organized exclusively for one or more of the following reasons
(among others):
charitable, religious, educational, scientific, or literary. Computer user
groups normally do not
qualify under Section 501(c) (3) because their purposes and activities rarely
are exclusively
charitable or educational, etc. Although your main activity may be education,
if it is organized to
help users of a certain brand or manufacturer, rather than the public as a
whole, tax exemption
will probably be denied.
Iggy
